How to Determine Whether or Not an Informational Product Will Sell
When it comes to business, there are no guarantees of success. Instead, there are a range of ways to decrease your level of risk by strengthening your concept. When developing an informational product, you must ensure the customers you want to pursue and the product itself are the right fit before potentially losing large amounts of time and money in your new venture. Customers buy when there is a need and when they have a product they can trust. With market research, you can optimize your product so that it is marketed to the customers with the highest level of need.
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Instructions
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Review the websites of competitors. Before digging deep into your own marketing research, browsing competitors' websites to see how information is presented helps you gain an understanding of the availability of your informational product in the marketplace. For example, some competitors may have little information available about the product, which can mean that customers already fully understand the service and need little information or it can mean that the competitor is missing the opportunity to educate customers. A confused mind usually says "no." Educating your customers is essential when you begin marketing your product.
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Conduct focus groups after you assess the marketplace. The purpose of a focus group is to give you information directly from potential customers. These people generally fit within a certain demographic that can be determined by reading white paper studies, surveys and research reports in your field. You also can test a market you think is best based on your professional knowledge of the subject, which is also a suitable option. The overall goal of your focus group is to get feedback on your specific product versus those available from competitors.
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Research sales data from the industry or marketplace. If a competitor is a public company, read the annual report to ensure the product offers a good amount of profit potential. Knowing how much you can earn from potential sales is important because it can help you set a marketing budget. If you have a small window of opportunity to earn a profit, a smaller marketing budget may be more appropriate. With a small budget, use free marketing resources.
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Participate in speaking panels your target customers frequent and write articles for publications that lend to your credibility as an expert. Customers are more likely to trust an expert than a product blindly marketed over the Internet. Presell products after each speaking engagement to get an idea of how well the product will do after an official launch.
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Tips & Warnings
Give samples of your product to focus group participants to get direct feedback.
